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9.3.2017 - Free investing newsletter Bookmark

The Plan
 
Do you know the plan? Has anyone called you with it? No? Well me neither. So, since we don’t have the plan, the only thing we can do is ask questions and try and figure out that plan.
 
We are in the most bizarre of worlds. Not many know this, but when you add up the assets that have been bought by the leading Central banks of the world, you come up with a startling figure.


The “Big Three” central banks - the Fed, the European Central Bank and the Bank of Japan - have collectively held rates at a zero percent on average since the global financial crisis began. For nearly a decade, central banks have been batting about tens of trillions of dollars to do so.
 
They have fueled bubbles. They have amassed assets on their books worth nearly $14 trillion. The $14 trillion of assets the G-3 central banks hold on their books is equivalent to a staggering 17% of all global GDP. The European Central Bank (ECB), Bank of Japan (BOJ) and Bank of England are still buying collectively $200 billion worth of assets per month.
 
Now add to that such things as the Swiss National bank and their 80 billions in US stocks. But wait, remember a week ago I told you of the Norwegian sovereign wealth fund? Not happy getting almost no return, they’re going to move their fund to 70% in equities.  That’s tens of billions worth of stocks.

 Well, there’s new-comers to the party. Unable to generate required returns through conventional means such as lending, Japan's second-largest bank by deposits, which currently invests in equities only through passive investments in funds, plans on becoming a giant prop-trading hedge fund and aims to boost active stock holdings to several hundred billion yen in the next five to 10 years! Hell, they’re ready to splurge a hundred billion right now.
 
Are you starting to see the picture? At this rate, Central banks and sovereigns are going to OWN EVERYTHING in a relatively short period of time. Consider that for a minute.
 
Now this is going to get a bit tin foil, so bear with me. But you do have to think about the ramifications. We’re talking for the most part about elite bankers, bankers that are interconnected around the globe. They are given free license to print money out of thin air. Consider the 200 billion a month that they’re spending right this moment. Do you think that’s coming out of some savings account?
 
HELL no, it’s being printed. So, they’re printing currency, and using it to buy shares of actual companies. If you follow that yellow brick road to its conclusion, you could have central banks being the majority shareholder in hundreds if not thousands of companies around the globe. What happens then??
 
I really don’t want to think this through, but follow along folks. Think about who these people are. These are the people that created the European Union. The people that destroyed the currencies of 17 nations and implemented the “Euro” as a test tube to prove that centralized planning out of Brussels is better than sovereign nations.  These are GLOBALISTS. These are ONE WORLD GOVERNMENT folks.
 
I’m not being crazy here. When these insane bankers continue to say that they’re going to be accommodative for a very long time, and then we see them continue to print and buy assets, and then we see their subordinates, the major banks stepping in to buy assets, and then the sovereign wealth funds...it makes me wonder if along with a one world government, they want a one world corporatocracy.
 
What happens when the major central banks own 51% of say GE, HON, IBM, AAPL, FB, TWTR, and a dozen other major companies?  They get to say how things are run, don’t they?  Is that their plan? Are they pushing back against ending QE, because the real plan is to keep printing fake dollars, and using those dollars to buy up real companies, companies they can ultimately control?  Don’t laugh, it isn’t that far out of the realm of possibility.
 
Look, I know it sounds goofy. I know it sounds sort of tin foil. But let me ask this. With the 14 trillion in assets they have, and the “who knows how many more” they’re going to buy, what is their exit plan?  Are they going to try and sell that stuff off? Well who’s going to buy it all? No one.
 
If things just keep on going as they are, Central banks, which truly have no skin in the game since they get their money out of thin air, are indeed going to be significant and important holders of some of the biggest companies. Imagine if they decide to take over Facebook as a majority shareholder. Do you think that any type of discussion or postings that don’t go along with the elitist mindset will be allowed? Not a chance.
 
I might just be paranoid, or I might be saying something that not many others have stumbled on. But from where I sit, it looks to me like the Central banks are more than happy to own the debt and the STOCK of many types of industry. Industry that they might ultimately control.  As of July, the ECB owns 101 billion Euro’s worth of corporate debt. That’s not chicken feed folks.
 
The central banks seem perfectly okay blowing enormous bubbles. We look at the stock market which is completely blown to proportions that it should never have been at. We look at housing prices that shouldn’t be where they’re at. We look at the zero rate situation, which is still pushing companies to buy up their own stock.  The Central bankers are NOT stupid, they’re just evil. They know they’re blowing bubbles and they’re okay with it. That means they’ve got a game plan.
 
I’m simply hoping that their ultimate plan isn’t to own every damn thing. Because they’re well on their way.
 
The Market:
 
It doesn’t stop. It’s possessed. No, it’s simply pushed by 200 billion a month in global QE.  When you have sovereign wealth funds telling you that they don’t even care about the prices of the stocks they’re buying, you know you’re in a bubble of unprecedented scope.
 
Yet there’s some interesting things going on, that suggest that maybe the elites are indeed trying to show their hand. Not long ago the IMF itself said that accumulating so much stock wasn’t the best plan going forward, which I found interesting. It’s the policy OUT OF the IMF that’s allowed such things.
 
It is one thing for someone who “plays” in the stock market to suggest things aren’t going to end so well. Heck, we’ve had everyone from Jim Rogers, to Charles Nenner, to John Hussman, to you name it suggest that we’re facing a 40 to 50% crash. Or more.  Nenner said just this week, he’s out of stocks and looking for a big drop. Hussman says he thinks the S&P could fall 60% top to bottom.
 
But what’s it say when one of the world great elitist slimeballs suggests things are too stupid? Let’s see what legendary banking elitist Rothschild has to say:
 
In what is a sure signal to oligarchs across the globe, Lord Jacob Rothschild, founder and chairman of RIT Capital Partners, has substantially minimized his exposure to what he views as a risky and unstable U.S. capital market. In the half-yearly financial report for RIT Capital Partners, Rothschild explained the company’s aggressive moves to significantly reduce exposure to U.S. assets.
 
“We do not believe this is an appropriate time to add to risk. Share prices have in many cases risen to unprecedented levels at a time when economic growth is by no means assured,” Rothschild said in his semi-annual report.
 
Additionally, Rothschild stated that he believes quantitative easing (QE) programs employed by central banks, such as the Federal Reserve Bank in the U.S. will “come to an end.”
 
Rothschild was quoted in the report as saying, “The period of monetary accommodation may well be coming to an end.”
 
Now, call me crazy ( I am) but when someone as connected as a Rothschild suggests that maybe you should cut your exposure to stocks and that QE could be nearing an end, this can ONLY have two meanings. One is that it’s simply a headfake, a lie, a “toss out” so that he doesn’t look like a manipulating scumbag.
 
The other is that yes indeed the globalists have a plan, and that plan is to put a grinding halt to the Global QE programs. Remember this folks, I’ve said it enough times that it should be engraved in your brain: if the Central banks stop printing, the global marketplace crashes. Period. End of Story. There’s NO way that stocks hold up, if they’re not getting pushed by over 250 billion a MONTH in free money printing.
 
Are they getting ready to unleash a massive crash? They surely could. But are they going to? If you read the commentary above, you can also make the case that they’re not going to stop printing for a second. In fact they’re going to increase their printing, and buying the debt and stock of major companies. If they do that, then the Central banks will actually be in control of some of the world’s best companies.  Ponder that for a while.
 
I have to tell you all, I simply don’t know what to think. All the things I trained for, all the balance sheets I read, all the sniffing around Wall Street is absolutely useless in a period where Central banks have bought 14 TRILLION worth of assets, and picking up 200 billion more each month. That money “has” to go somewhere and it’s ending up in stocks.
 
Each time we’re on the verge of rolling over some, they rush in and jam us higher.  Just a few weeks ago, we started seeing the picture perfect “stair step” lower on the S&P. Lower lows and lower highs had completed two cycles. The third one was about to start and then “boom” for 4 days in a row we simply “melted up”, erasing that pattern and putting us within 4 points of the all time closing high.
 
I have to think that until we get clear evidence of the Central bankers actually cutting the QE, then this won’t stop. Ride it for what you can get, but don’t get conned into thinking it cannot stop. It most certainly can, all it will take is for them to shut off the spigot. If Draghi came out tomorrow and said “we are tapering our QE and will end it completely in 12 months,” we’d fall 4000 points in a week. So far, none of them have said that. So, lean long and get what you can. Just understand that at the end of this rainbow, there’s going to be something there. A rug pull? Maybe. A complete take over of a thousand companies? Maybe. I don’t know. But get your popcorn, something’s coming 

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